FrontEnd Ventures, which specialises on Kenyan startups and has a $5 million fund that will probably grow to $10 million, has just begun operations.
The fund took off quickly and just completed its initial $1 million to assist Kenyan startups in obtaining the early-stage finance that frequently eludes most of them, despite the nation ranking among the top four investment destinations in Africa.
“We are investing in Kenyan founders because we believe in our thesis that people who have lived experiences have a much better chance of creating products that address related nuances,” Njeri Muhia, FrontEnd partner and co-founder, said. “This means investing in local women founders too, since they bring with them a different profile of experiences, solutions and ingenuity that is unmatched.”
Here Is What You Need To Know
- FrontEnd focuses on impact-driven tech firms across a range of sectors, including agribusiness, e-commerce, healthcare, and transportation.
- The venture capital firm has already begun issuing its initial tickets for up to $100,000, but it is eager to make additional investments in the firms in its portfolio.
- Muhia noted that the venture capital firm recently made their first investment and is currently evaluating a few other startups with plans to fund at least five more before the year ends.
- The firm aims to de-risk the Kenyan startups it is investing in by depositing small checks at the early stage with the intention of having follow-on investments — where it can invest up to $500,000 in series A.
- Muhia stated that they seek to develop informal ties with founders in a field where VC and startup relationships are formal.
“We want to develop a really strong relationship with the founders. And this means, being open to their calls … and not just when they want to talk about their companies but also themselves. We understand that they also need support as individuals because they are the ones who are going to be keeping this business alive for the foreseeable future,” she said.
- FrontEnd is in talks with a number of institutions and high-net-worth individuals (HNWIs) in Kenya, according to Muhia, to add them to its current roster of investors, which also includes executives from the manufacturing, real estate, and banking sectors.
“Our fund is backed by Kenyan LPs, and what I love about the ones that have committed, is that they understand the need to support new local businesses,” she said.
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The FrondEnd Ventures Team
Njeri Muhia worked as a credit portfolio manager at Barclays after spending years in London connecting Kenyans living abroad with investment opportunities back home.
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Steven Wamathai has a lot of expertise in the field of investment management.
Frontend Ventures startups Frontend Ventures startups
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh